The earnest money goes as a credit towards your closing costs. If the seller is paying all of you closing costs and prepaids, you can get all of your earnest money back at closing. In this buyers market, sellers are willing to pay closing costs for the borrowers very often. It is not uncommon at all for a deal to be structured on a VA where the Veteran gets their earnest money returned at closing, getting in for what is called a double 0 down.
Good luck and Thanks for serving.
